A report by the Strategic Director for Transformation and Resources summarised the changes to the arrangements for appointing External Auditors following the closure of the Audit Commission and the end of the transitional arrangements, at the conclusion of the 2017/18 audits. It was explained that the Council would need to consider the options available and put in place new arrangements in time to make a first appointment by 31 December 2017.

Options available to Members were set out in the report and summarised as follows:

Option 1 To make a stand – alone appointment – The Council would be required to set up an Auditor Panel. Members of the Panel must be wholly or a majority independent members as defined by the Act.

Option 2 Set up a Joint Auditor/Local Joint Procurement – The Act enables the Council to join with other authorities to establish a joint auditor Panel. This will also need to be constituted of wholly or a majority of independent appointees (Members). 

Option 3 Opt –in to a sector led body – In response to the consultation on the new arrangements the LGA successfully lobbied for Councils to be able to ‘opt-in’ to a Sector Led Body (SLB) appointed by the Secretary of State under the Act. An SLB would have the ability to negotiate contracts with the firms, nationally, maximising the opportunities for the most economic and efficient approach to procurement of external audit on behalf of the whole sector.

Councillors expressed support for Option 2.

Resolved - That Members note the report detailing the various options available and endorse the Council’s proposed approach of supporting the Local Government Association (LGA) in setting up a national Sector Led Body for the appointment of external auditors.